If you have a blue-collar job, then you may pay more for auto insurance than your friends with white-collar jobs. Paying more for insurance may seem unfair, but there are reasons for it. Most of these reasons are related to the lower earnings of blue-collar workers. Luckily, there are also measures you can take to mitigate the effect of your job on your insurance premiums. Here are some of the reasons for these relatively higher charges, and what you can do to counter them:   

You Have Gaps in Coverage

Blue-collar workers who aren't in permanent employment may have gaps in employment. For example, if you are working as a manual laborer at a construction site, then it may take you some time to land the next job when the current construction ends. You may find it difficult to pay your insurance premiums when unemployed, and this gap in insurance may affect your subsequent rates.

The solution is to ensure that you never have a gap in your auto insurance coverage. A good way of doing this is to pay your annual insurance premiums as a lump sum, and not as monthly installments. Paying once may also save you some money if your insurer gives you a discount for making a lump sum payment.

You Don't Own a Home

According to citylab.com, many service and blue-collar workers (who, incidentally, forms about a third of American workforce), find it difficult to afford homes. Unfortunately, homeowners tend to pay less for auto insurance than those who do not own homes. This is because auto insurance companies offer homeowner's discounts to their clients who own homes and buy both policies (homeowners and car insurance) from them. As a blue-collar worker without a home, you won't enjoy this discount.

However, you can still enjoy multi-policy discounts by buying more than one type of insurance from your auto insurance, even if the second one is not homeowners insurance. For example, if you own a small business, then buy your commercial liability insurance from the same company. 

Bad Credit

The third factor is bad credit. Although anybody can have a dismal credit rating, it's more likely for those who don't earn more and are struggling with their finances. For example, you may find it difficult to pay your auto finance loan if you don't have a stable job. At the same time, auto insurers use credit scores to calculate premiums because, for one reason, those who have lower scores are more likely to file claims.

The good news is that you can shore up your credit scores even if you are in a low-paying job. For example, always pay your bills on time, leave the good debt on your credit report, and manage your credit card balances. If your scores are extremely low, talking to a credit repair professional may help. 

For further assistance, contact a local insurance provider, such as one from Beriswill Insurance.